Classic car market ‘best collectible investment’

22 February, 2018

Classic cars generate the best financial return – new analysis of the collectibles market over the past century reveals.

According to a study by the London Business School and Credit Suisse, buyers of vintage marques would have 242 times their money since the year 1900, compared with purveyors of rare books who would earn just seven times their initial investment.

Classic cars are the best investment of all physical assets, the research says. Their worth draws comparisons to Premier Cru Bordeaux wine (65-fold return), jewellery (30-fold return), and postage stamps (20-fold return).

Collectibles also prove to get better returns than savings in bonds or cash, the study finds.

The Top IndexThe figures adjust for inflation so show the investment in real terms.

The Historical Automobile Group International (Hagi) Top Index was used to compile the results. The index lists prices of 50 models from 19 different marques.

Using its notional figure of 21,000 actual cars, they have a “market capitalisation” of £13 billion, or £619,000 a car, The Times newspaper suggests.

Executing cautionAlthough the market for classic cars can fluctuate, the peaks and troughs are much less volatile than stocks, experts say.

“What we have seen in the past is that when the (stock) markets get weird, people invest more in classic car s as they are more stable — and tangible,” suggests ClassicCars.com auction analyst, Andy Reid.